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Market segmentation: what is it and how to do it?

Posted: Sat Apr 05, 2025 9:32 am
by muskanislam99
Do you know what market segmentation is and how important it is?

Note: currently, there are several types of research (market, competition, public, niche, satisfaction, organizational climate) that can contribute to the strategic planning of all companies.

In fact, these studies are essential for organizations to be able to base their decision-making on data.

So, when it comes to market segmentation, it’s no different. Through it, we can better understand the habits of your brand’s consumers. This way, it’s possible to create campaigns and actions that become much more incredible and assertive.

Want to learn more about market segmentation? Stay tuned.

What is market segmentation?
Hundreds (or even thousands) of consumers with mobile phone number data updated 2025 completely different habits purchase your product every day. Right?

However, knowing each of them is an impossible task. On the other hand, if we think of these customers as a single element, it is also not possible to make a clear analysis.

Therefore, market segmentation emerges as a third way. After all, it allows the entrepreneur to divide the large group into segments (clusters) to investigate them.

This way, the company can create marketing and sales strategies that focus on specific groups. This way, it can achieve its proposed objectives more effectively.

Why should I do market segmentation?
Well, each person who buys your product has a unique profile, right?

So even if hundreds of people are buying the same item, they are likely doing so for different purposes or different needs.

For example, let's imagine that you sell televisions.

Some customers will buy a certain model because they want a big screen.
Others, because the image quality is perfect.
Others will still opt for the same model because it has a modern and innovative design.
See? You're going to sell the same TV, but each customer is buying the same product because it has a different feature/reason.

Therefore, market segmentation is important so that the entrepreneur knows the different groups that buy their product. And, thus, meets their needs.

What are the main benefits of market segmentation?
Market segmentation is essential for companies in any sector, at all times.

After all, segmenting the market will bring many benefits to your business. See what the main ones are.

Get to know your audience’s behavior better;
Create more assertive campaigns and actions;
Put the customer at the center of all your strategies;
Find out which are the best relationship channels;
Understand the customer's needs;
Stand out from the competition more easily;
Determine the best language to reach the customer;
Make it easier for the customer to go through the purchasing journey;
Reduce customer acquisition cost (CAC) .
How to do market segmentation?
Determine your target audience
The first step to successful market segmentation is determining who your target audience is.

Therefore, based on the history of recent sales, determine the target audience. Here, it is important to use real data and characteristics so as not to “contaminate” the entire analysis that will be done later.